A new version of NAFTA, called USMCA (the U.S.-Mexico-Canada agreement), is expected to come into effect on July 1, 2020. After nearly three years of negotiations, each nation is working to meet each country`s specific requirements in order to meet the implementation deadline. This “new NAFTA” makes several remarkable updates to the previous agreement, including: for companies that want to produce in Mexico, one of the country`s greatest advantages is access to free trade. In this article, we will examine some of the country`s most important free trade agreements and explore what makes them so important to conduct a successful production activity in Mexico. As the United States threatens to impose tariffs, Argentina is discussing a possible free trade agreement with Mexico, Idigoras said, adding that such talks could escalate if tensions between North American neighbors escalate. In October 2017, the left-wing Facebook page “The Other 98 percent” published a widely held meme that Mexico, in retaliation for Trump`s border plans, had signed a major agricultural agreement with Argentina, which would have a very negative effect on American farmers: free trade agreements allow countries access to different markets and promote global competition. More importantly, free trade agreements can increase a country`s GDP and promote trade opportunities and incentives for attractive costs for companies wishing to start their business. For companies that want to produce in a foreign company like Mexico, free trade agreements offer many advantages. These include removing barriers to trade and ensuring close cooperation between nations on trade in goods and services. Mexico offers more free trade agreements (FTAs) than any other country and is a trading partner with more than 50 countries.
The full list of Mexico`s 14 free trade agreements is available here. Given this reputation, it is easy to believe that free trade agreements make business in Mexico tariff-free. While this robust export platform offers many benefits to businesses, it requires vigilance, as agreements are often amended. For answers to all your questions about Mexico`s free trade agreements and how they can benefit your business, contact Tetakawi today. As part of the automotive agreement, countries negotiate annual bilateral import quotas for duty-free motor vehicles to enter the market. Such annual quotas have been set between Mexico and Argentina; Mexico and Brazil; Mexico and Uruguay. Negotiations on the agreement on the automotive sector, concluded on 5 July 2002 at the XXII Mercosur Presidents` Summit. The agreement, signed on 27 September 2002, provides for the free trade of motor vehicles from July 2011. Following the conclusion of the Economic Supplement Agreement (ACE) 55 on Tuesday, Mexico will maintain the free trade of light vehicles with Brazil, while it will implement a quota policy with Argentina for a period of three years, and then move to a free trade mode. The agreement will exempt light vehicles and auto parts exported between Mexico and Argentina from tariffs. Meanwhile, auto trade with Brazil totaled $4.68 billion, with Mexican exports amounting to $2.77 billion and a surplus of $868 million, three times the previous year`s $280 million. Recently, Mexico`s Economy Minister Ildefonso Guajardo Villarreal and Argentine Industry Minister Debora Giorgi met in Buenos Aires, Argentina, to sign the agreement that will govern auto trade for the next four years, and bilateral trade flows in the automotive sector will be maintained duty-free, thanks to a quota and counter-trade system.
, to return to free trade on March 19, 2019.